UPDATE 4-Canadian Pacific warns of Q2 revenue drop, shares down 2 pct

(Adds comment from rival Canadian National on its outlook,
paragraph 12)

By Allison Lampert

MONTREAL, June 21 (Reuters) - Canadian Pacific Railway Ltd
warned on Tuesday it expected second-quarter revenue to
fall about 12 percent from a year earlier, hurt by weak
commodity volumes, the Fort McMurray wildfire in northern
Alberta and a stronger Canadian dollar.

The Calgary-based company's Canadian-listed shares were down
more than 2 percent at C$157.24 by midday in Toronto, and
earlier fell more than 4 percent.

The Fort McMurray wildfire sharply cut output from the
Alberta oil sands, and the company was forced to temporarily
halt services to the city. Grain and potash volumes have also
been weak.

In a note to clients on Tuesday, Desjardins analyst Benoit
Poirier said the revision was not entirely unexpected, as the
rail industry grapples with weaker volumes.

U.S. railroad CSX Corp also said in May it expected
"high single-digit volume declines" to negatively impact
second-quarter earnings.

Canadian Pacific said it expected adjusted earnings of about
C$2.00 per share. It reported adjusted earnings of C$2.45 per
share in the second quarter of 2015.